Kibbey Wagner Injury & Car Accident Lawyers | February 18, 2025 | Car Accidents
If you receive Social Security disability benefits, you may wonder how a lump sum settlement affects SSDI benefits or SSI payments. SSDI and car accident settlements can be confusing. The good news is that receiving a personal injury settlement does not stop you from receiving SSDI benefits. However, a car accident settlement could impact SSI payments.
What Is the Difference Between SSI and SSDI Benefits?
Social Security disability includes both SSDI and SSI. Social Security Disability Insurance (SSDI) is paid to workers who become disabled and cannot work because of their disability. Supplemental Security Income (SSI) is paid to disabled individuals with limited resources or who do not have enough work credits for SSDI benefits.
SSDI is an earned benefit for disabled workers. The benefit is based on your work history and tax deductions paid into the Social Security system. The amount you receive depends on how long you worked and the amount you earned during that time.
SSI is a needs-based program for disabled, blind, and elderly individuals. They have never worked or did not work long enough to qualify for SSDI. The person must have limited resources and income to qualify for SSI benefits.
Car accident settlements can be substantial. They include economic and non-economic damages. Learning how a lump sum settlement affects Social Security disability benefits can help protect your settlement and disability income.
How Does a Car Accident Lump Sum Settlement Affect Social Security Disability Benefits?
A Florida car accident settlement does not impact SSDI benefits. Instead of being based on your income and resources, SSDI is based on your lifetime earnings and work history. Therefore, you can receive a car accident settlement without losing your SSDI benefits.
However, SSI could be impacted by a lump-sum car accident settlement. Because SSI is a needs-based program, the Social Security Administration may view a lump sum settlement or part of the settlement as income and resources. If so, it could impact your SSI benefits by lowering the amount of your monthly SSI benefit or result in losing your eligibility for Social Security disability.
How Can I Protect My Social Security Disability Benefits When Receiving a Car Accident Settlement in Florida?
If you receive SSDI, a car accident settlement should not impact your benefits. However, it is always wise to talk with an experienced car accident lawyer about your case before accepting a settlement. The settlement structure could impact how the settlement impacts your Social Security disability benefits.
If possible, an attorney can help you develop a strategy for protecting your SSI benefits. For example, you may be able to use a significant amount of the settlement proceeds on approved expenses. Spending the proceeds on approved expenses can reduce your countable resources for SSI eligibility.
Discuss setting up a special needs trust for your car accident settlement. When a special needs trust is drafted correctly, it can provide financial support without disqualifying someone from SSI disability benefits.
The trust holds the car accident settlement proceeds. A trustee manages the trust and uses the settlement funds for your benefit. For example, the trust can pay for expenses your SSI benefit does not cover, such as adaptive devices or special dietary needs.
What Should I Do if I’m Injured in a Palm Beach Gardens Car Accident and Receive SSDI or SSI Disability Benefits?
It is crucial to report a car accident to the police immediately. Call 911 to request police and medical assistance. Wait at the accident scene for the police to arrive. Do not admit fault or refuse medical care.
Prompt medical care is crucial for a personal injury case. Depending on your disability, the insurance company may try to blame your car accident injuries on a previous condition.
Contact an attorney as soon as possible to discuss your rights and options for a personal injury case. A personal injury lawyer can help you prove another party is responsible for your injuries and challenge claims that your injuries are not covered because of a prior condition.
If the insurance company offers a settlement, do not sign anything without legal advice. Signing a settlement agreement ends your legal claim. You waive your right to pursue a claim or file a lawsuit when you accept the settlement.
Call for a Free Consultation for More Information About Car Accidents in Palm Beach Gardens, FL
Contact Kibbey Wagner Injury & Car Accident Lawyers to learn more about car accident settlements and how our legal team can help you maximize your recovery. Your initial consultation with a Palm Beach Gardens personal injury lawyer is always free.
Contact Kibbey Wagner Injury & Car Accident Lawyers For Help Today
For more information, please contact the Stuart, Port St. Lucie, or Palm Beach Gardens personal injury law firm of Kibbey Wagner Injury & Car Accident Lawyers to schedule a free consultation today.
We proudly serve Martin County, St. Lucie County, Palm Beach County, and its surrounding areas in Florida:
Kibbey Wagner Injury & Car Accident Lawyers Stuart
73 SW Flagler Ave
Stuart, FL 34994
(772) 444-7000
Kibbey Wagner Injury & Car Accident Lawyers Port St. Lucie
1100 SW St. Lucie West Blvd. Ste 202
Port St Lucie, FL 34986
(772) 247-3374
Kibbey Wagner Injury & Car Accident Lawyers Palm Beach Gardens
300 Avenue of the Champions Ste 220
Palm Beach Gardens, FL 33418
(561) 944-4000
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